Tax Reduction (continued - p2 of 4)
Income Taxes
Although current income tax rates in the US are at 10-35%, maximum tax rates between 1913 and 2009 (over a period of 96 years) exceeded 50% for 65 years, and were over 90% for 14 years. Anything of value which is received in exchange for labor, products or services associated with regular business activity (for profits over investment and expenses) is held liable for state and federal income taxes. Some states such as Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming don't levy income taxes, but the federal income tax is levied and enforced in every state.Individuals generally have the most privacy and least amount in income taxes, depending on income levels. Businesses are moderately private and usually pay income and payroll taxes, worker's compensation, unemployment, social security, FICA (government employee wages and retirement) and Medicare taxes, depending on the number of employees (if any). Corporations have little privacy and pay even more in taxes and business expenses, while tax exempt charitable trusts and non-profit organizations may receive tax deductible donations and are often exempt from income, property and other taxes.
Reduce living expenses (and thereby the need for taxable income) via sustainable, economical, self-sufficient living practices.
Replace as much taxable income with non-taxable income as possible. Sources of non-taxable income may include gifts or inheritances
(property received worth up to the annual exclusion amount, currently at $13,000), income derived from tax exempt charitable trusts,
non-profit organizations and charitable purposes.
Reduce income taxes with credits (such as energy credits, earned income and child tax credits), deductions (such as the standard $5000
deduction if single, $10,000 if married, or itemized deductions including business, medical, dental or educational expenses and charitable
donations if they add up to more than the standard deduction) and exemptions.